Health Reform Step-by-Step: Extension of Young Adult Coverage

The Patient Protection and Affordable Care Act is a long, complicated document that will cause real changes in the way that you and your family access and pay for health insurance. Texas Impact is committed to helping you understand the bill and making sure that you get the benefits available to you. In the coming weeks, we will pick apart the bill-- starting with the provisions that go into effect in 2010-- so you can see who will be affected.

Extension of Coverage for Young Adults

Beginning on September 23, 2010, insurance companies are required to permit children who do not have insurance through their employer to stay on their parents' insurance until they turn 26. This applies to all plans in the individual market, new employer plans, and existing employer plans. This provision applies to both unmarried and married children. While the provision goes into effect on September 23, in some cases, it may actually start on the plan's next renewal date (which may be January 1st, 2011).

Texas law currently allows children up to age 25 to stay on family policies. Because of the gap in age requirements, many children who turn 25 before this provision goes into effect could loose coverage for a few months. Twenty-five year olds will, however, be allowed to re-enroll in their family's plan in September.

Secretary of Health and Human Services Kathleen Sebelius is working with insurance companies to encourage them to voluntarily expand coverage to children who would fall off their parents' coverage between now and September. United Healthcare, WellPoint (which administers some BlueCross BlueShield plans), Humana and Kaiser Permanente have all put in place measures that will allow children to stay on their parents' plan until September.

The Kaiser Foundation offers a brief analysis of this provision of the law. To view it, click here.

To read a statement from Secretary Sebelius about expansion efforts, click here.

For more information about how the Affordable Care Act will affect Texas, click here.

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